The new PFM makes several notable changes to the existing formula.
The Police Funding Model (PFM) was implemented in April 2020 and redistributes a portion of frontline policing costs from the Government of Alberta (GOA) to municipalities that receive policing services through the Provincial Police Service Agreement (PPSA).
The PFM is set to expire on March 31, 2026. On December 18, 2025, the GOA announced changes to the PFM formula, as well as significant increases to the overall amount of funds collected from municipalities. Overall, municipalities will face higher costs, unclear benefits, and significant uncertainty.
While RMA is still analyzing the known changes and seeking more details from the Minister in relation to formula methodology, the most notable changes to the PFM are the following:
Overall Costs and Municipal Contributions
- According to the Government of Alberta, the total frontline PPSA policing costs (the figure on which PFM contributions are based) will increase from $252.3 million to $380.5 million.
- The proportional municipal contribution will reduce from 30% in 2025, to 22% in 2026, increasing gradually back to 30% in 2031.
- Unlike the previous PFM formula which used 2018 frontline PPSA costs throughout the duration of the formula, the frontline cost will be updated annually.
- Both the proportional municipal contribution and the total cost base will grow each year, resulting in unpredictable and likely significant annual increases to municipal contributions.
Allocation Among Municipalities
- A reduction in the weighting of equalized assessment is a positive development, as equalized assessment has no connection to policing service needs.
- There is no link between municipal contributions and enhancing or maintaining services to meet defined local service levels.
- Removal of the Crime Severity Index (CSI) weakens recognition of rural crime realities.
- Introducing weighted occurrences/calls for service should strengthen the link between the formula and service levels, but the methodology is unclear.
The GOA has stated that implementation timelines and specific impacts to municipalities will be provided in the coming weeks. RMA is hopeful that more information and clarity will be provided to better understand the impacts of these changes.
RMA is in the process of analyzing all known changes to the PFM and will release a member guide in the new year.
Kallie Wischoff
Policy Advisor
825.319.2245
kallie@rmalberta.com
Wyatt Skovron
General Manager of Policy & Advocacy
780.955.4096
wyatt@rmalberta.com